Reality, Minnesota (my home state) and the Feds are spending more money than they take in.
Example: Canada 10 years ago was broke; their dollar was $1.50 to ours. They had to bite the bullet, and they did. They closed 1/3 of their hospitals because the Socialized Medicine was breaking them. They regulated their banks and they were not hit with the mortgage crises at all. They made loans to those who could pay it back. In fact their real-estate is going up not down. Then they mined, drilled and exported everything they could. Today their dollar is at par with us and their debt to gdp is 70% 10 years earlier their debt to gdp was at 140%. They have come back from the brink of devaluing their dollar and becoming a third world country. We are headed in the direction of becoming a European style country. If I wanted to live in Europe I would move.
Example; Japan was going to own all of our assets in the 80’s, They were the China of today. They had growth, cash and exports. Today they have a debt to gdp of 225%. Over the last 20 years they did became more socialistic, The government controlled prices and interest rates and bailed out banks and industry, dramatically increased taxes just to keep up appearances and wages high with benefits that were not sustainable. The great industrial nation of Japan is about to become a third world country. They still make great products but they are 2 ½ times more broke than we are. Given the Earthquake and tsunami it will be 50 years before, if ever, that they dig them selves out of the economic hole they made for themselves. Taxes in Japan are at 50%. They pay $50 of every $100 to the government. This government has debt that is 2.25 times greater than there total gdp. They do not have a chance. If the government took all their money they would still have to borrow to survive. It is only a matter of time before they default on everything or start a war to get out of the mess they are in.
Here is a great chart that shows how the growth of debt to gdp has occoured in a number countries from 1992 to 2009. Check this out.
http://www.gfmag.com/tools/global-database/economic-data/10394-public-debt-by-country.html#axzz1NSPJZNtW
Here is how some of the countries tax:
Income Tax Rate Corporate Tax Rate Sales Tax / VAT Rate
US 35 35 0 in trouble
Japan 40% 40% 5% ruined
Canada 50 50 15 dependent on us
United
Kingdom 50 28 17 stagnant
Germany 42 33 19 stagnant, defaulting?
Greece 40 24 19 defaulting
India 30 33 12 growing economy
Enough about money. The point is we are broke and we can go the way of Europe, Japan and others and completely enslave ourselves to our governments or we can get out of this mess and never get back in it. It is a war of philosophies at best. Individual Responsibility vs. Government Responsibility. Which do you want? Unions, welfare, farmers, public employees, and every special interest want hand outs, bailouts, benefits and all they can get. They do not care who pays. The government should not be in a position to decide whom the winners and losers are especially with my tax dollar. Why does the government need to employee 2 million workers who cannot be laid off and maintain a standing army of 1.5 million. It is nuts.
Enough of Money:
The presidential season is not yet here and that is all that is on Cable News. I hate it. It is just the same old same old. Their time will come next year give us a break. I do not care who has polled the highest in the last 3 days. I do not care who has been sleeping with whom. I do not care whom Wolf Blitzer thinks will win the race. I do not care if you like Palin or not. Nobody has a crystal ball and nobody especially the pollsters have a clue but they sure like to make us think they do.
We have some real problems that need to be talked about and not just used to get reelected. I already see the Dems with adds of Reps pushing old ladies off cliffs as only the beginning of politics as usual. We are broke who does not get that. If you are a sitting legislature anywhere you better begin to work on the peoples business and stop the “I am working on getting reelected.” Oh please let us have term limits so we can get some work done and get rid of the legislatures whose primary interest is in themselves and reelection, and not doing what “we the people want”. I am 64 soon to be 65. Nobody is going to push me off a cliff. I will survive no matter what the government does. I believe that. Apparently there are still majorities of people who believe that government is the solution to their survival. I do not. If it was all taken away from me today, Social Security, Medicare and whatever else I would survive. I would still go fishing and I would still eat. I guarantee this to myself. I am not looking for a guarantee from the government. They cannot solve one personal problem. They can not solve one economic problem, is all they can do is to take our money and claim they have solutions to our problems. How has that been working for you the last 50 years? Why in the world do we think they can ?
A great example of what is happening in the world of government. Minnesota is no different than the federal government. The legislature passes a spending bill that has major cuts. We are a small state and we are 5 Billion in debt. That is to say we spend every dime we collect and then need to spend 5 billion more that we do not collect. The governor waits till the session is adjourned then vetoes it because he wants to tax the rich and add another billion in spending to the state. Now all the special interest who are at the government trough, unions, elderly, schools, education, and the like want to tax the rich some more so they can keep doing what they have done the past 50 years. Living beyond their means at the taxpayer’s expense. He is nuts. We are broke. Now he will call a special session and attempt to work out a compromise. I do not want a compromise. We are broke. The government does not need more money my god they have mishandled what they have why would any sane person give them more. This is only Minnesota. By the way the special session will cost an arm and a leg but it is just taxpayer money. So why do they care. If they cannot complete the work of the people they should loose their job.
Another example is the debt ceiling being raised once again. We have put off dealing with this for 10 years. We have even passed federal legislation that was just circumvented by the administration so they now do not have to deal with the debt ceiling till august. Does anybody think they will deal with it then? I don’t. If they do it will only be raised again with all the Politicians saying that there are real cuts in the future and we will just do this onetime. They are all liars and everybody knows it. More fear, we will default on our debt and send the world into a tailspin. Give me a break. Liars.
Can you imagine saying to your mortgage holder just give me some more money and I will then use the loaned money to get caught up. Why in the world does our government seem to practice this illogic logic?
The bottom line is term limits. If we had politicians with term limits they would no longer be able to stay in office with special interest buying their vote. Then we the people might get the work of the country done. What ever happened to do the right thing not the politically correct thing? Lets get rid of the old guard and send some new legislators that believe in Individual Responsibility, smaller and leaner government, balanced budgets, spending what we have to spend not more, get out of peoples lives, lower taxes and the like.
Amen, Dr. Selby!
ReplyDeleteI still think you should do a border blog. The biggest Criminal Aliens drop house was raided yesterday. (I won't use the term illegal) Safer than ever!